Are all Janitorial Companies Insured?

November 27, 2014

Insurance coverage from one janitorial company to the next can vary significantly. Sometimes, certain companies don’t require the same level of insurance, and sometimes they try to reduce their costs by avoiding certain coverage. If the latter is the case, you probably don’t want to work with that company as it seems they are willing to cut costs indiscriminately, and this may ultimately reflect on the work they do. Nevertheless, answering the question “are all janitorial companies insured” can be complicated, so let’s take a look instead at the types of coverage you should expect from your cleaning company?

Business Liability Insurance

When a janitor or one of their employees damages something in a client’s home or office, they need business liability insurance to cover it – or they’ll be out of pocket for the costs. Minor damage is obviously not a major problem, but if your janitorial company accidentally breaks a computer or other major equipment, the costs can run into the thousands. Can an uninsured janitorial company afford these costs? Possibly not. More importantly, the costs of lawsuits can far exceed the cost of damage, so you want to make sure your janitorial company has a valid business liability or general liability insurance plan. These types of coverage also cover the costs of injury to a janitorial staff member while working at your office.

Property Insurance

Your company and your janitorial service provider probably have a lot of equipment and supplies that need to be protected. On site, you may have office furniture, computers, chairs, phones, and other equipment. Your janitor probably needs vacuums, cleaners, brushes, and dusters (to name a few), that you may or may not supply in order for your cleaning services to be properly completed. Property insurance with a limit equal to the value of your office equipment will help you protect said equipment in case of damage. In addition, this insurance should be structured such that your janitor can work in multiple sites (unless they are contracted to clean in your offices only). You may want to get this insurance yourself, or insist that your janitorial company is also covered.

Building Coverage

Building coverage is important if you own the business where your office is located. While it is unlikely that a janitor will have this coverage, building coverage protects you against damage from the elements including fire, tornado, hurricane, or storm. However, your janitor will probably want to invest in business income and extra expense coverage which will cover income and equipment loss in case of problems like illness to the service provider or lost, damaged, or stolen equipment. Anything that impacts the ability of the insured to earn income (providing that item was covered elsewhere in their insurance) will allow the service provider to recover lost income. For example, if a janitorial company owner falls ill and cannot provide regular service, lost income would be covered. In addition, if a fire occurs at a location and destroys all the janitor’s cleaning equipment, the cost of the equipment and any lost income would also be covered.

Ultimately, insurance helps protect the office manager/owner and ensure that cleaning services are provided with no unexpected costs to the office. In addition, these insurance policies will ensure that the janitor can continue to work or receive income in case of an unexpected accident. Not all janitorial companies are covered by all types of insurance, so it’s up to you to consider your needs and check that your janitor is covered appropriately.